The industrial vacancy rate declined for the fifth consecutive quarter as the Chicago market recorded 2.2 million square feet of positive absorption in the third quarter, according to research from NAI Hiffman.
According to the Oakbrook Terrace-based brokerage firm, the vacancy rate decreased to 10.5 percent by the end of September, a decrease of 20 basis points since last quarter’s 10.8 percent rate, and 120 basis points below the 11.8 percent rate recorded a year ago.
Since the recovery began last year, the Chicago metropolitan area has tallied almost 13 million square feet of positive absorption.
The O’Hare, I-55 Corridor and I-80/Joliet Corridor submarkets continue to lead the way on the road towards recovery, each witnessing more than 1 million square feet of absorption year-to-date.
In the third quarter, all three markets continued to record positive absorption, with the I-80 market leading the pack with 813,758 square feet. Of the 21 separate market areas in the Chicago region that NAI Hiffman tracks, 14 recorded positive absorption. Some the biggest activity came from the aforementioned I-80 corridor as well as Lake County and Northwest Indiana, which recorded 729,153 square feet and 628,078 square feet of positive absorption, respectively.
A few markets did not fare as well, with Central DuPage recording -413,733 square feet and South Chicago -425,099 square feet of absorption.
Despite the overall positive trends, the market still has a way to go before it is considered healthy. Currently, there is 126.5 millions square feet vacant in the Chicago area.
Key New Leases:
- Systamex signed a 626,784-square-foot lease at 10100 58th Pl in Kenosha, Wis.
- Saddle Creeks took 415,800 square feet at 20901 Walter Strawn Dr. in Elwood, Ill.
- Ricoh Americas corp signed a 261,544-square-foot lease at 254 International Dr. in Bolingbrook, Ill.